The Misbehavior of Markets Book Summary by Benoit B Mandelbrot and Richard L. Hudson
Professional traders often speak of a “fast” market or a “slow” one, depending on how they judge the volatility at that moment. Black Swans are extremely unpredictable events that have massive impacts on human society. These include positive Black Swans, like the invention of the Internet and the discovery of antibiotics, as well as negative Black Swans, like the 2008 recession. Financial theory, as experts like Markowitz have pointed out, is built on a foundation of assumptions that do not [...]